Press Release
CORPORATE NEWS RELEASE
- Revenue increases by 1.1% to € 96.6 million in 2006
- Pre-tax loss of € -16.4 Mio. (2005: € -5.1 Mio.) and net loss of € -18,4 Mio. (2005: €
1.6 Mio. net income incl. € 6.1 Mio. from disposal of business unit) due to exceptional expenses
(around
€ 12 million in FY 2006) as anticipated clearly negative
- Cost reduction and growth in licenses in 2nd half-year: operating result (net of extraordinary items) increased to € -3.6 million in FY 2006 (compared to prior year at € -4.2 million)
Berlin, Germany, 27 March 2007 - Beta Systems Software AG (BSS, ISIN DE0005224406)
recorded year-on-year revenue growth of € 1.0 million, or 1.1%, in fiscal 2006. Its annual result
is € -18.4 million (previous year: € 1.6 million ) and is characterized by extraordinary items
resulting from the sale of Kleindienst Scanner GmbH, a mid-year risk reevaluation, and a one-time
impact, throughout the enterprise, due to the company’s reorientation in the ECM and IdM
segments. The company has undertaken organizational resizing measures and is oriented towards
marketing, sales, and service. It has also completed a refocusing of activities on product range,
customers, industries, and regions. The effect of these measures is that the second half-year has
already shown a reduction of the operating cost basis (fixed costs p.a.) of some 8%. The company’s
operating result, net of extraordinary items, is € 0.6 million higher than in the prior year.
Having accounted for these non-recurring effects in the relevant separate financial
statements prepared in accordance with the German Commercial Code (Handelsgesetzbuch – HGB), the
parent company of the Group, Beta Systems Software AG, recorded no net retained earnings
("Bilanzgewinn", also referred to as unappropriated surplus) in fiscal 2006. As a result, there
will be no dividend payment for the 2006 fiscal year. However, both the Management Board and the
Supervisory Board remain committed to a dividend policy that is geared to the future.
Outlook for Financial Year 2007
Due to the measures taken in the sales area, which resulted from the company
refocusing its corporate strategy, the Board expects a slight increase in revenues for the
financial year 2007. This will be accompanied by a significant increase in software license and
service revenues as well as a reduction in the proportion of hardware in the overall revenues.
Because of the optimized cost structure, management currently expects the company to become and
stay profitable during the course of the year with a single-figure EBIT margin for the financial
year 2007.
Comments by the Management Board
Kamyar Niroumand, CEO of Beta Systems Software AG, issued the following statement
in response to the company's annual results: " Behind us lies an eventful year and one that has
brought us many changes. The first six months of the fiscal year 2006 were dominated by the final
implementation of our cost reduction and consolidation measures. From July onwards we made
significant progress, particularly at an operational level and concluded a number of major
contracts with key financial customers such as Allianz, Postbank, or UniCredit Group. We succeeded
in reversing the downward trend in our licensing business - our main engine for growth -, ending
the year with a modest gain of approximately 1% for the year.
Kamyar Niroumand added, "Our target now is to continue this positive trend and to strengthen
our maintenance-and service business by concluding new contracts in the licensing- and solutions
areas, particularly in the IdM and ECM business segments. We have laid the foundation for a
successful turnaround and have created favorable conditions for growth. The goal which we have set
ourselves is for all three Lines of Business to operate profi¬tably by 2008.“
Further information regarding FY 2006
Online Annual Results Press Conference
The Management Board will comment on the results of fiscal 2006 as part of an
online annual results press conference to be held on March 27, 2007. The online press conference
will take place at 11:00 CET and will be broadcast live on the internet at
www.webpk.de/betasystems_270307.
The complete annual report is available on www.betasystems.com - section ‘Investor relations’.
-- Ends --
About Beta Systems Software AG, Berlin, Germany
Beta Systems Software AG (Prime Standard: BSS, ISIN DE0005224406) develops
high-quality software products and solutions for the secure and efficient processing of large
quantities of data, and is one of the leading medium-sized, inde-pendent, European software
solution providers in its market segment. Its software products and solutions sup-port customers in
the automation, safeguarding and traceability of their business processes within the three core
areas of document management (Enterprise Content Management business area), user management
(Identity Management business area) and information management in data processing centres (Data
Centre Infrastructure business area).
The company has been listed on the stock exchange since 1997, and currently employs around
645 staff, mainly in the competence centres of Berlin (company headquarters), Cologne, Augsburg and
Calgary. In addi-tion to this, Beta Systems is internationally active with 17 wholly-owned
subsidiaries and numerous partner companies. Among its worldwide total in excess of 1,300 customers
with over 3,000 running installations are major businesses in the fields of financial services,
industry, commerce, logistics and IT services, in Germany, Europe and the USA. For more
information, please see
www.betasystems.com.
Press Contacts
Corporate:
Beta Systems Software AG
Arne Bassler
Tel.: +49 (0)30 726 118-170
Fax: +49 (0)30 726 118-881
E-Mail:
arne.bassler@betasystems.com
Local UK Media Contact:
JGC PR
Jack Gocher
Phone: 0044-(0)1494 724113
Mobile: 0044-(0)7815 780931
Email:
jack@jgc-pr.co.uk
back
